Screening for potential Multibaggar Stocks

A crucial filter in the quest for multibagger stocks is market capitalization. The potential for a company to deliver multi-fold returns is inversely related to its initial size. For example, a ₹5,000 crore company reaching a ₹1 lakh crore valuation represents a feasible multibagger scenario. However, a company already valued at ₹10 lakh crore achieving a ₹20 lakh crore market cap, while a significant absolute increase, is unlikely to be considered a multibagger due to the substantial base. Therefore, focusing on companies with smaller market capitalizations is often the starting point for identifying potential multibaggers. To be continued…